The National Electric Power Regulatory Authority (Nepra) on Friday notified use-of-system charges (UoSC) ranging from Rs6.23 to Rs19.62 per unit for bulk power consumers (BPCs) of all distribution companies, including K-Electric, participating in the competitive electricity trading market.
asserted
Authority → notify → market
Under the Competitive Trading Bilateral Contract Market (CTBCM), open-access consumers participating in the upcoming 400MW auction will have to pay Rs6.23 to Rs19.62 per unit to use the national grid for transporting electricity from the supplier to the consumer.
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consumers → participate → consumer
The UoSC includes transmission and distribution charges, a fixed grid charge and cross-subsidy.
asserted
UoSC → include → charges
A B-3 industrial consumer will be charged Rs6.23 per unit, while a B-4 industrial consumer will pay Rs9.09 per unit.
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consumer → charge → unit
These charges will be in addition to the electricity supply price, including generation cost, to be agreed between the private-sector supplier and the BPC.
asserted
charges → include → supplier
The UoSC for C-3 and C-2 single-point distribution consumers has been notified at Rs14.95 to Rs19.62 per unit, while A-2 and A-3 general supply consumers will be charged Rs19.14 per unit.
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consumers → notify → unit
Agricultural consumers will pay Rs6.72 per unit.
asserted
consumers → pay → unit
For BPCs not participating in the competitive wheeling auction, UoSC rates have been set significantly higher, ranging from Rs19.17 to Rs32.56 per unit, depending on the consumer category.
asserted
rates → participate → category
In this category, B-3 and B-4 consumers will pay Rs19.17 and Rs25.45 per unit, respectively, while C-2 and C-3 consumers will be charged Rs31.30 and Rs32.56 per unit.
asserted
consumers → pay → unit
A-2 and A-3 consumers will pay Rs32.08 per unit, while agricultural consumers will be charged Rs19.66 per unit.
asserted
consumers → pay → unit
A fixed grid charge of Rs1 per kilowatt per month, based on sanctioned load, will also apply to both categories, irrespective of whether they participate in the competitive auction.
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they → base → auction
The commercial market operation date for the CTBCM had already been declared as Jan 22, 2026, with the first market auction originally scheduled for June.
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auction → declare → June
However, the auction was delayed because UoSC charges had not been determined and notified.
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charges → delay → ?
The notification of uniform UoSC rates for all distribution companies and K-Electric is intended to pave the way for the formal launch of the competitive wholesale electricity market.
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notification → intend → market
The Independent System Operation (Ismo), a new power division entity, is expected to auction 400MW of electricity in the first phase within the next couple of months.
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Operation → expect → months
The government has allocated a total of 800MW for auction in two phases.
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government → allocate → phases
Nepra had forwarded its UoSC determination to the government for uniform application after considering the views of the power division, Ismo, K-Electric and BPCs on the mechanism for calculating and settling the charges, including inter-Disco differentials, cross-subsidies and transmission and distribution losses.
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Nepra → forward → differentials
Under government directives, the impact of inter-Disco differentials arising from uniform UoSC rates will not be borne exclusively by wheeling consumers.
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impact → arise → consumers
Nepra had also circulated a draft adjustment mechanism for settling inter-Disco differentials among relevant stakeholders.
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Nepra → circulate → stakeholders
The regulator said the key principle was to ensure that UoSC applicable to open-access consumers remained equal to those applicable to similarly placed consumers of suppliers of last resort (SOLRs).
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UoSC → say → resort
Based on the transmission and distribution losses of individual Discos, Nepra determined a uniform loss factor of 8.04pc at the 11kV level.
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Nepra → base → level
For consumers connected at 132kV, it approved a uniform loss factor of 1.51pc, as proposed by the power division.
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it → connect → division
Nepra ruled that any additional charge required to cover differentials among Discos or K-Electric would apply to all consumers, including open-access consumers and those of SOLRs, thereby maintaining uniformity.
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charge → rule → uniformity
The federal government had earlier approved framework guidelines for the competitive wheeling auction of 800MW of electricity and for moving towards integrated energy planning across the country.
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government → approve → country
Under the framework, 800MW of generation capacity will be sold through competitive auctions for five years.
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800MW → sell → years
The quantum could gradually increase after the initial trial, subject to government approval.
uncertain
quantum → increase → approval
Ismo will now hold the first 400MW auction under a process approved by Nepra a few days ago.
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Ismo → hold → Nepra
It is also expected to announce the auction calendar and detailed procedure shortly.
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It → expect → calendar
There will be no upper or lower limit on bid values, which will remain fixed for one year.
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which → remain → year
According to timelines set under the IMF programme, approval of the auction guidelines had been targeted for December, while approval of uniform wheeling charges by Nepra was due in January 2026.
uncertain
approval → accord → January